Hearns suggestion for discussion is to use those redlists against cryptolocker. What to we do to make redlisting against cryptolocker ransomware criminals obsolete, then? Improve Windows security?!?
Your premise is flawed. You imagine you can stop crime by regulating a tool. You can't.
Money is a tool. Guns are a tool. Neither of them commit crimes. People do.
Criminals intent on some action will find a way to carry it out, whether or not guns are banned, or whether or not there is KYC/AML in place. You can't completely protect yourself from terrorists and criminals unless you give away all your freedom to those that will protect you. Then it becomes pretty easy for protectors to fight terrorists (any real or made up). The problem is it also becomes easy for them to fight and limit you to keep/increase their power.
If you want to stop/limit crime look at the economic conditions, psychological conditions etc. that lead to it and work from there, while also taking steps to protect yourself. Same for terrorism. Look at which political ideologies aggravate it. You don't go after the tools and freedom and crack down on everyone with one gigantic suffocating dragnet. It's a bit like killing a flea with a sledge hammer. You'll get collateral damage.